05/06/2026

BIZ & FINANCE FRIDAY | JUNE 5, 2026

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TNB, Petronas collaborate to develop RGT-3 in Lumut

Data centres generate indirect economic spillover

benefits, says Tengku Zafrul

managed through structured project management and ongoing stake holder engagement. TNB confirmed that none of its directors, major shareholders, or persons connected to them have any direct or indirect interest in the transaction over the past six months.

TNB said the transaction will not affect its issued and paid-up capital or the shareholding of its major shareholders. The project is expected to be funded through a mix of debt and equity, which may increase

o Companies sign heads of agreement that sets framework for discussions to finalise terms of partnership to build third regasification terminal

gearing, but is not expected to have a material im pact on net

It added that TNB is the ultimate shareholder of Integrax through TNB Genco, while TNB Fuel

PETALJNG JAYA: Tenaga Nasional Bhd (TNB), through indirect wholly owned subsidiary Integrax Bhd under TNB Power Generation Sdn Bhd (TNB Genco), has signed a heads of agreement (HoA) with Petronas Gas Bhd (PGB) to

participation through a joint venture to be established via a special purpose vehicle. The RGT-3 project is expected to enhance fuel security, improve cost com petitiveness and support long term growth through liquefied natural gas infrastructure development. It will also expand both parties’ involve ment in the LNG value chain and position RGT-3 as a key regasification asset developed with strategic partners. According to media reports, CAAP records show AirAsia had accumulated the fees in air navigation, landing, parking and passenger service charges from 2021 to May 2026, excluding pending penalties and interest. AirAsia Group said it views these coordinated and sensationalised reports as part of a deliberate smear cam paign that has long been occurring aimed at undermining fair competition in the Philippine aviation sector. It said such narratives serve only the interests of those seeking to limit consumer choice and create con ditions that could lead to a monopoly in the market. “A monopoly benefits no one except dominant market players,“ it said. For travellers, it often results in was imposed, but this is only valid for 150 days and will expire on July 24, 2026,” he said. Section 122 can be imposed without specific justification but is temporary in nature, and cannot be extended beyond the 150-day period. Following the imposition of Section 122, the US initiated a new tariff framework under Section 301, which covers forced labour, excess capacity, environmental standards and subsidies. Johari said, “For Malaysia, the US is applying only two elements under its Section 301 framework, which are forced labour and excess capacity, both of which extend beyond domestic conditions to include risks arising from global supply chains and third-country inputs.”

assets per share for the financial year ending Dec 31, 2026.

is a wholly o w n e d subsidiary

KUALA LUMPUR: The miscon ception that data centres only generate jobs is misplaced as they bring about wider economic benefits beyond direct employ ment through the ecosystems they help create, said Tengku Datuk Seri Zafrul Abdul Aziz ( pic ). The Malaysian Investment Development Authority (Mida) chairman said criticisms that data centres create relatively few jobs compared with manufacturing investments fail to take into account the broader economic spillovers the industry generates for the country. “The spillover is more indirect. That spillover comes from building and bringing in the right eco system, especially when you talk about artificial intelligence (AI). “It’s like building a highway. When you build the PLUS Highway, you cannot judge its value by the number of toll operators collecting tolls,” he said during a panel discussion at the Energy Transition Conference 2026 here. Tengku Zafrul emphasised that Mida is focused on ensuring that AI related investments contribute positively to the broader economy through meaningful spillover effects. “We realise that we need to be more selective when it comes to investments such as data centres. Energy efficiency is important, and that’s why we came up with various methodologies and conditions,” he said. Tengku Zafrul said data centre operators have a responsibility not only to adopt green and sustainable energy sources, but also to help build the broader ecosystem that supports AI infrastructure in Malaysia. “The whole supply chain behind AI infrastructure must come with them. They should encourage it,” he said. On local participation, he said the government is encouraging greater involvement of domestic companies and suppliers in data centre projects. “We are encouraging local participation, we are imposing conditions of up to 40 per cent local content,” he said. Meanwhile, Tengku Zafrul said nuclear energy should remain under consideration as Malaysia seeks to achieve its net-zero aspirations and ensure sufficient energy supply for future growth. – Bernama

It added that the not require shareholder approval. transaction does

established with parliamentary approval as an independent coal procurement entity. Integrax and PGB are regarded as related companies due to indirect shareholding via Minister of Finance Incorporated, while the Employees Provident Fund is a common major shareholder of TNB and PGB. opportunity to travel by air. “Looking ahead, we are incredibly invested in the development of new airport infrastructure across the country, including in Ninoy Aquino International Airport and Mactan Cebu International Airport, which will unlock greater opportunities for growth, improve connectivity, en hance operational efficiency and enable us to lower costs even further. “As we expand our fleet and aircraft order book to become the first narrowbody global low-cost network carrier, we intend to deploy more aircraft into our operations in the Philippines. “These developments will allow Philippines AirAsia to expand our network, offer even more competitive fares and continue delivering greater value to Filipino travellers,” he said. “Malaysia’s industrial output reflects genuine demand. Malaysia has submitted detailed evidence to this effect and will defend this position before USTR. USTR has yet to come out with any findings and propose actions with regard to this investigation,” it added. Miti pointed out that Malaysia is a responsible trading nation with strong worker protections and a firm commitment to fair trade. The ministry said Malaysia has consistently abided by and upheld the rules-based international trading system, honouring its obligations under bilateral, re gional, and multilateral trade agreements. “The government will continue to engage the US at all levels and will provide further updates as the process progresses,” it said.

jointly develop the third regasification terminal (RGT 3) in Lumut, Perak. In a Bursa Malaysia filing,

On risks, TNB said the project faces typical infrastructure-related challenges, including possible delays in construction, procurement or regulatory approvals, cost fluctua tions due to market conditions, and financing risks within the planned timeline. It said these will be

TNB said the HoA sets the framework for further discussions to

finalise the basic terms of the partnership, including investment

AirAsia Group denies reports of Philippines AirAsia suspension SEPANG: AirAsia X Bhd (AirAsia Group) has denied recent media reports claiming that the operations of its airline, Philippines AirAsia (flight code Z2) are being grounded. reduced competition, fewer choices and significantly higher airfares. AirAsia Group co-founder and adviser Tan Sri Tony Fernandes said AirAsia has long championed

affordable travel and will continue to stand firmly against any development that harms consumers or restricts access to air connectivity. “AirAsia carries almost seven million guests in the Philippines annually and our commitment to the Philippines is absolute. “We are deeply invested in the country, its people and its future. For over a decade, we have played a key role in democratising air travel, making flying affordable, fun and accessible to millions of Filipinos who may not otherwise have had the The US has completed its assessment on forced labour, with Malaysia placed in the lower band of proposed tariffs ranging from 10% to 12.5%. “We got 10%. These are proposed tariffs and have not been officially signed yet. The decision is still pending approval by the US president,” Johari said. Meanwhile, the Ministry of Investment, Trade and Industry (Miti), said in a statement Malaysia will continue to engage with USTR actively throughout the process, including at hearings, to present its case and protect Malaysian trade interests. Regarding excess capacity, Miti said Malaysia reiterated that it does not have excess industrial capacity that distorts or disrupts global markets.

In a statement, the airline said the reports are entirely false and do not reflect the reality of the business or operations of the carrier. The group said all Z2 flights remain fully operational, with flights and services continuing as scheduled across its network, subject to normal operational considerations such as weather and other standard factors affecting airline operations. To recap, the Philippine media recently reported that the Civil Aviation Authority of the Philippines (CAAP) had issued a cease-and-desist order to the airline to halt operations at its airports over an outstanding bill of RM17.42 million (270 million pesos). capacity are still ongoing, with Malaysia maintaining that it does not have such issues domestically. “As far as we are concerned, there is no excess capacity in this country, although risks may arise from global supply chain linkages,” Johari said. The current 10% tariff will remain in place until July 24, after which any new Section 301 tariff will take effect only if formally endorsed and communicated by the US administration. Johari explained that the current tariff situation stems from the earlier 19% tariff framework, which a US court declared null and void, prompting Washington to introduce a temporary measure under Section 122 of the US Trade Act. “Under Section 122, a 10% tariff

Miti: We will continue to engage with USTR actively Investigations into excess

From p13